> For the complete documentation index, see [llms.txt](https://paragon-protocol.gitbook.io/paragon-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paragon-protocol.gitbook.io/paragon-protocol/core-products/paragon-swap.md).

# Paragon Swap

ParagonSwap is the Automated Market Maker (AMM) at the heart of Paragon Protocol. It powers permissionless, on-chain trading between crypto assets — with no intermediaries and no centralized control.

### Why ParagonSwap feels different

* **Your keys, your coins.** Trade straight from your wallet. No logins. No KYC. No custodians.
* **Best-execution by design.** Our new **Paragon Flow** layer turns every swap into a signed **intent**. Intents are batch-auctioned to solvers for the best route and price, reducing MEV and returning **surplus** back to you.
* **Paragon Shield (MEV & privacy).** Optional private order submission and batch settlement that help you avoid sandwiching and timing games.
* **Transparent rewards.** Liquidity Providers (LPs) earn swap fees **plus** Flow **rebates** when their pools are used in winning routes. Lockers (stXPGN / veFlow) share protocol-aligned yield.

***

### How a swap works (two paths)

#### 1) Classic Router (instant)

* You submit a standard on-chain transaction to the Router (Uniswap v2-style).
* You choose slippage; if price moves too far, it reverts.
* You pay the pool fee; there’s no surplus sharing.
* Best when you need raw “send it now” execution.

#### 2) **Flow (Intent-based)** — *recommended*

* You sign an **EIP-712 intent**: `{ sellToken, buyToken, amountIn, minOut, deadline, prefs }`.
* The **Flow Batcher** privately groups intents and lets solvers compete for best execution across Paragon pools (and later approved external venues).
* Settlement happens on-chain through **FlowSettlement**, which verifies your signature, executes the route, and splits any **surplus** (the amount above `minOut`) automatically:
  * **60%** to you (instant cashback)
  * **30%** to LPs of the pools actually used (Flow earnings)
  * **10%** to stXPGN/veFlow lockers\
    *(Testnet defaults; DAO-governed on mainnet.)*

> Toggle **Shield** on the Swap screen to use private, batch-settled Flow mode. You’ll see a “You saved …” line item when surplus exists.

***

### Liquidity-backed trading

Trades clear against liquidity pools supplied by the community. When you add liquidity, you receive **Paragon LP (PLP) tokens** representing your share of the pool. These tokens entitle you to:

* **Swap fees** from that pool
* **Flow LP rebates** when your pool is part of a winning Flow route
* **(Optional) Farm rewards** if the pool has an active farm

***

### Fees & rewards

#### AMM v2 pool fee (classic & Flow)

* **0.30%** per trade by default *(DAO-configurable, pool-specific)*
  * **0.25%** → LPs (immediate to the pool)
  * **0.05%** → Protocol (XPGN buybacks / treasury via Paragon Vault)

> These are the “base” AMM fees you already know. They apply whether you use Classic or Flow.

#### **Flow Surplus & Rebates** (Flow mode only)

* If Flow achieves **`amountOut > minOut`**, the **surplus** is split automatically:
  * **60%** → Trader (cashback, paid in the buy token)
  * **30%** → LPs used by the winning route (pro-rata by liquidity in that block)
  * **10%** → stXPGN / veFlow lockers (execution yield)
* A small **protocol skim** (e.g., 0–5%) may apply **before** the split (DAO-governed).
* You’ll see **“You saved …”** on the swap confirmation and a **Claim** button (or autostake to stXPGN if you opt in).

> Surplus is **additional** to base fees. It rewards good routing and the liquidity that actually enables best execution.

***

### Yield farming boost (optional)

Deposit your PLP tokens into **Farms** to earn additional **XPGN**. Farming helps offset impermanent loss and deepens the pools most used by traders. With **Utilization Gauges** rolling out, emissions increasingly favor pools that drive real volume and smooth price impact.

***

### What you’ll see in the app

* **Swap drawer**
  * *Mode:* Classic ↔ Flow (Shield)
  * *Min received (bound):* your `minOut`
  * *Expected savings:* estimated surplus if Flow wins
  * *Cashback received:* on success (Flow only)
* **LP dashboard**
  * *Fees earned:* standard pool fees
  * *Flow earnings:* surplus rebates from routes that used your pool
* **Lockers page (stXPGN / veFlow)**
  * *Execution yield:* your share of surplus directed to lockers

***

### Supported pool types

* **Today:** v2 constant-product pools (XYK) on BNB Chain testnet
* **Soon:** stable pools and CLMM pools (compatible with Flow settlement; no hard fork needed)

***

### Risks & safeguards

* **Price movement:** Classic mode can revert if slippage is too tight. Flow protects against settlement **below** your `minOut`.
* **MEV:** Shield reduces common attacks via private batching, but markets are adversarial. We keep an allow-list for external venues at launch and expand thoughtfully.
* **Impermanent loss:** LPing carries market risk. Flow **adds** rebates; it doesn’t remove IL risk.

***

### FAQ

**Do I always get a surplus in Flow?**\
No. Surplus appears when the solver can beat your bound. If not, you still settle at or above `minOut` — otherwise it reverts (or falls back to Classic if you’ve enabled fallback).

**What token are rebates paid in?**\
In the **buy token** you receive from the swap.

**Can I use Classic swaps only?**\
Yes. Just keep Shield off and use the Router path.

**Will external DEX routes be used?**\
Yes, after testnet we’ll progressively add approved venues (Thena, Pancake, etc.). Flow still enforces your `minOut` and applies the same surplus split.

***

### Testnet status (next 3–4 weeks)

* Flow intents + Shield batching: **ON**
* Surplus split: **60/30/10** (no protocol skim)
* External venues: **Paragon pools only** (Phase 0)
* LP Flow earnings + Trader cashback: **claimable in-app**
* Contract addresses and parameters will be listed on the **Deployments** page.